Dividends and Fox Corp’s insanely simple bet on sports wagering

In an article by Andrew Wills of the Globe and Mail, during Fox investor day, the Murdoch’s Rupert and Lachlan unveiled what Fox is going to do next since selling their Hollywood Studio and TV stations to Disney for $71 billion.

Outside of Fox News which the President watches, the other reason to watch Fox is sports. Sports on TV is generally live and Fox carries baseball, auto racing, soccer and NFL Football. The game which still draws the biggest audience of the year is the Super Bowl and one aspect is gambling. It is possible to gamble on many aspects of the game.  Lachlan Murdoch said. we outpunch competitors in the amount of live TV we deliver to American households.

Fox has decided to partner with Stars Group Inc best known as the PokerStars website and come September, an typical viewer will be able to bet on anything going on live as he (it tends to be he) watches sports. In England, gambling and watching sports particular football is a typical aspect of Sky Betting and Gambling which Stars Group paid $4.7 billion a year ago. Stars Group will bring their operational ingredients for success, while Fox has the strategic reach and customer resonance.

The deal with Stars Group is a 25 years in length and Fox can buy up to 50% of the Stars Group US operations over the next 10 years.

Linking to dividend paying stocks, sports and gambling have been together for a long time, even when it was considered illegal.  People still do it and did it, Fox is trying to institutionalize it and if people can gamble from their own home watching sports they will likely keep renewing their cable TV subscriptions and that is consistent money for the operators.

There are more questions than answers, till the next time – to raising questions.

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